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CENTER FOR BUSINESS EDUCATION 1

MBA STUDENT ATTITUDES

ABOUT BUSINESS & SOCIETY LEAD

WILL THEY WHERE

Center for Business Education

2008


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2

In Fall 2007, the Aspen Institute Center for Business Education, a program of

the Aspen Institute Business and Society Program (Aspen BSP), went out to

15 business schools to survey MBA students about their attitudes towards the

relationship between business and society.

This is the third time in the last nine years that Aspen BSP has surveyed MBA

students to nd out what they are learning and thinking about that relationship. What

we have discovered through those surveys is that MBA programs denitely inuence

the way students think about the role of business and its relationship to society once

they become managers and leaders. (Each of the surveys was conducted via the

internet by Universum, a global consulting and communications company. 1,943

students responded to the 2007 survey.)

This recent survey shows some encouraging changes in the way business school

curriculum addresses the complex relationship between social issues and business

practices and decisions.

n Business students in 2007 are thinking more broadly about the primary

responsibilities of a company. In addition to citing shareholder maximization and

satisfying customer needs, more students are also saying “creating value for the

communities in which they operate” is a primary business responsibility.

nMBA students are expressing more interest in nding work that offers the potential

of making a contribution to society. (26% of respondents in 2007 say this is an

important factor in their job selection compared with 15% in 2002.)

n That said, business schools and companies have not convinced them that

environmental and social responsibility contribute to corporate nancial success.

n Although more students in 2007 than in 2002 believe it is very likely that they will

face values conicts on the job, the further they progress through their MBA program

the less condent they feel that their business school training is preparing them to

manage those conicts.

2008


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INTERNATIONAL BUSINESS SCHOOLS PARTICIPATING IN THE SURVEY

Carnegie Mellon University, Tepper School of Business

Columbia University, Columbia Business School

Duke University, Fuqua School of Business

London Business School

Thunderbird School of Global Management

University of California, Berkeley, Haas School of Business

University of California, Los Angeles, Anderson School of Management

University of Colorado, Boulder, Leeds School of Business

University of Michigan, Ross School of Business

University of Notre Dame, Mendoza College of Business

University of Pennsylvania, Wharton School

University of Virginia, Darden School of Business

University of Western Ontario, Richard Ivey School of Business

Yale University, Yale School of Management

York University, Schulich School of Business

DEMOGRAPHIC PROFILE OF SURVEY RESPONDENTS

Gender: 65% of respondents are male; 35% are female.

Citizenship: 67% of the respondents identify themselves as U.S. citizens. Of the

non-U.S. citizens, 20% are from India; 20% from Europe; 19% from Asia (excluding

mainland China and India); 16% from Canada; 8% from South America; 7% from

Mainland China; 4% from Central America or Mexico; 3% other; 2% from Africa;

1% from Australia/New Zealand.

Age: The largest group of students is between 26 and 29 years old (54%), followed

by 30 to 31 years old (17%).

Year in Business School: 55% of respondents have just started their MBA program;

37% are halfway through the program; 8% are about to graduate.

The following pages contain

a summary of our 2007

findings. The complete reportis available for $50.00 from

The Aspen Institute Center for

Business Education

(www.AspenCBE.org).

MBA STUDENT ATTITUDES ABOUT BUSINESS & SOCIETY


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DEFINING BUSINESS SUCCESS

0 10 20 30 40 50 60 70 80

20022007

Other

Ensure confidentiality in the use and

transfer of information

Offer equal opportunity employmentEnhance environmental conditions

Create value for the local community

in which it operates

Comply with all laws and regulations

Invest in the growth and well-being

of employees

Produce useful and high-quality

goods/services

Satisfy customer needs

Maximize value for shareholders

Please choose a maximum of three alternatives.nMBA students in 2007 tend to think

more broadly about the primary

responsibilities of a company than

earlier respondents.

nWhile identifying maximizing

shareholder value and satisfying

customers as the top responsibilities,they see a number of other criteria—

producing quality goods and services,

complying with laws and regulations

and creating value for the community

in which it operates—as very important

responsibilities.

What do you believe are the primary responsibilities of a company?


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n Responses to the question about a

“well-run” company seem to suggest

how students think companies fulll

their primary responsibilities.

n Students’ denition of a “well-

run”company has remained quite

consistent over the past ve years—retaining and attracting exceptional

employees and providing excellent

customer service topped the list in

2007, as they did in 2002.

nDespite recent public discussion of

the environment—global warming,

alternative energy sources, and the

like—students rank the importanceof companies having progressive

environmental policies near the

bottom of the list.

In your definition of a “well-run” company, how important are the following?

0 10 20 30 40 50 60 70 80 90 100

Is a stable employer

Adheres to progressive environmental

policies

Creates products or services that

benefit society

Offers high financial return

to shareholders

Adheres to a strong mission

Provides competitive compensation

Invests in employee training and

professional development

Has efficient and flexible operations

Operates according to its values and

a strong code of ethics

Produces high-quality productsand services

Provides excellent customer service

Attracts and retains exceptional people

Veryimportant

Somewhatimportant

Not importantat all

Please indicate whether each of the following is “very important,” “somewhat important” or“not important at all.”


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0 10 20 30 40 50 60 70 80 90

20022007

Other

Lower cost of capital

No benefitEasier access to foreign markets

Reduced operating costs*

Increased revenue

Fewer regulatory or legal problems

Long-term viability in the market-place

A stronger and healthier communi ty

Greater customer loyalty

A more satisfied and productive workforce

A better public image/reputation

*This option was not offered in 2002

n Today’s MBA students more readily

make the connection between good

corporate citizenship and a stronger,

healthier community.

n But they are still looking at the

benets of social responsibility

in a conventional way—goodpublic image—and not making the

connection to increased corporate

revenues and reduced operating

costs.

How do you think companies benefit from fulfilling their social responsibilities?

BUSINESS LEADERSHIP AND VALUES

Please choose a maximum of three alternatives.


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0 10 20 30 40 50 60

Not likely

at all

Somewhat

likely Very

likely

Raising or borrowing capital

Awarding stock options

Negotiating with suppliers or customers

Managing personnel in manufacturingfacilities/plants

Conducting performance reviews

Financial reporting

Interacting with government officials

Setting executive compensation levels

Outsourcing production operations

Natural resource exploration

Investing in less-developed countries

Downsizing

n In answer to a question about

the probability of facing values

conicts in the workplace, 83% of

students believe that their values will

sometimes conict with what they are

asked to do in business.

n As to where they expect to encounterthose conicts, “downsizing” and

“investing in less-developed countries”

top the list.

n Compared with rst year students,

students graduating soon are less

convinced about the possibility of

values conicts occurring in many

business areas—among themdownsizing, investing in less developed

countries and nancial reporting.

Assume you are engaged in each of the following business activities/practices. Howlikely do you think it is that values conflicts would arise?

Please indicate whether it is “very likely,” “somewhat likely,” or “not likely at all” that valuesconflicts would arise.


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0 10 20 30 40 50 60 70 80

Not likely

at all

Somewhat

likely

Very

likely

Not mind too much

Quietly handle the stress

Look for another job

Speak up about your objections

Try to get others to join you in

addressing your concerns

Experience it as stressful

Advocate a lternative va lues or

approaches within the company

n As in the previous surveys, students

conrm that they would nd such

values conicts stressful.

n A majority of students expect to deal

with those conicts by advocating for

alternative actions or approaches.

nHowever, even in a post-Enron world,

only 45% say they are very likely to

speak up about their objections.

n Of particular interest to companies:

nine out of ten students say they are

“very likely” or “somewhat likely” to

look for another job if they nd their

values in conict with those of the

company where they work.

If you find that your values conflict with those of the company where you work, howlikely it is that you will:

BUSINESS LEADERSHIP AND VALUES

Please indicate whether it is “very likely,” “somewhat likely,” or “not likely at all.”


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To what extent do you agree with the following statement: my business education ispreparing me to manage values conflicts?

BUSINESS SCHOOL PREPARATION

Please indicate whether it is “very likely,” “somewhat likely,” or “notlikely at all.”

n Students in 2007 feel more prepared for managing values

conicts than those in the 2002 survey. However, their

condence in that preparation falls consistently throughout

the program.

nDiscussion of business and society issues has become

more commonplace in business schools. In 2007, three-

quarters of the respondents strongly agree that they feelfree to raise issues related to the social responsibility of

companies in the classroom—up from 70% in 2002.

n 55% of students strongly agree that faculty are interested

in such discussions, compared with 40% of respondents in

the 2002 survey.

n 55% of students in the 2007 survey who have just started

business school strongly agree that they have opportunities

to practice ethical/responsible decision making as part of

their MBA. That agreement decreases to 48% for students

halfway through the program and drops further to 41% for

those about to graduate.

0 10 20 30 40 50 60 70 80 90 100

Not at allSomewhat A lot

2002

2007

2007

0 10 20 30 40 50 60

I will graduate soon

I am about halfway

through

Just started


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10

0 10 20 30 40 50 60 70 80 90

20022007

Starting or developing a business

Being involved in my community

Pursuing personal interests

(arts, music, fitness, travel)

Paying off debt

Having a positive impact on society

Earning a high income

Focusing on family (personal relationship

or marriage, having children, etc.)*

Enhancing business skills

Developing in my career

*In 2002, this option was phrased “Building a family or developing/maintaining a significant relationship”

n Career opportunities consistently top

the list of what will be important to

MBAs immediately after they receive

their degrees.

n Students in 2007 are more interested

than those in 2002 in nding work

that offers the potential of making acontribution to society.

n Yet the importance of “having a

positive impact on society” decreases

over the course of the MBA program,

especially for men. By the time they

are close to graduation, only 29% of

men place high importance on this

issue, compared with 43% of men intheir rst year. There is only a small

drop in its importance for women

students as they move through the

MBA program (52% when they start

out vs. 50% as they near graduation).

In the first year after receiving your MBA, what will be most important to you?

Please indicate whether each of the following is “very important,” “somewhat important,” or“not important at all.” (Only “very important” data shown here.)


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How much value do you think recruiters place on each of the following factors whenevaluating a candidate for employment?

JOBS AND RECRUITING

Please indicate whether each of the following is “high value,” “moderate value,” “little value”or “no value”.

nStudents feel that recruiters are

primarily looking for candidates with

functional industry expertise.

nOnly half of the 2007 respondents

think that their personal integrity

gures largely in corporate recruiters’

evaluation of them as a potentialemployee.

n54% think that recruiters place little or

no value on how well a job candidate

understands current sociopolitical

issues.

0 10 20 30 40 50 60 70

No

value

Low

value

Moderate

value

High

value

Non-corporate experience

(e.g., volunteer work or work in

government or non-profit sector)

Understanding of sociopolitical issues

Expertise in multi-stakeholder

decision making

Personal integrity

Industry expertise

Functional area expertise


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0 10 20 30 40 50 60 70

Not importantat all

Somewhatunimportant

Somewhatimportant

Veryimportant

Responsible environmental practices

Open, fair community relations

Commitment to a diverse workforce

Responsible practices in overseasoperations, including supply chainmanagement

Safe, high quality products

Responsible corporate governance andtransparent business practices

Good, fair employee relations

n The most important factor in

students’ decisions about where to

work is how well a company treats its

employees.

n 2007 MBA students are also

concerned about responsible

corporate governance and thetransparent business practices of a

potential employer.

n A company’s environmental practices

and its commitment to diversity rank

relatively low on their list of criteria

when deciding where to work.

As you decide whether to accept a job offer, how much importance will you place onwhether your potential employer has:

JOBS AND RECRUITING

Please indicate whether each of the following is “very important,” “somewhat important,”“somewhat unimportant” or “not important at all.”


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What factors will be most important in your job selection?

Please choose a maximum of three alternatives. n Top factors in job selection are the

nature of the job itself, compensation

and whether the position allows for a

reasonable work/life balance.

n The potential to make a contribution

to society through one’s job is more

important to MBA students in 2007than it was in previous years (26%

compared to 15% in 2002).

nHowever, its importance goes down

for men as they continue through

their business school program. On

the other hand, women who will

graduate soon choose it more often

than women just beginning their MBA

programs.

Challenging & diverse job responsibilities

Compensation

Work/life balance

Potential to make a contribution to society

Colleagues whom I respect

Opportunities for training and development

Opportunities for rapid advancement

Opportunities to travel/work internationally

High ethical standards

Job security

Other

0 10 20 30 40 50 60 70


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nGenerally, women place more importance on the role business needs to play in

creating and maintaining a healthy community and society. Unlike male students,

that concern increases as women move through the MBA program.

nWhen choosing a job, the potential to make a contribution to society is a more

important decision point for women (33% of women vs. 22% of men say it is very

important). It becomes even more so for women approaching graduation.

n Responsible environmental practices also are more important for women than

men when considering a potential employer (38% of women vs. 28% of men

report these practices are very important.).

nWomen more than men feel it is very important for potential employers to

provide information during the recruiting process on how they fulll their social

responsibilities (36% for women vs. 25% for men).

nWomen students are more likely to feel it will be very important to be able to have

a positive impact on society in the year following their graduation (48% for women

vs. 39% for men).

As with past surveys, the 2007 responses were significantly different for menand women.

GENDER DIFFERENCES


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nWhen dening a “well-run” company, women place a greater emphasis on

whether a company adheres to its values and a strong code of ethics (83% of

women say it is very important vs. 75% for men). They place less emphasis on

offering high nancial returns to shareholders than their male colleagues (41%

for women vs. 51% for men).

nWomen are less apt to feel that their business education is preparing them “a

lot” to manage values conicts (35% for women vs. 47% for men). The closer theyare to graduation the less satised they feel with that preparation. Interestingly,

men start out feeling better prepared and end up nearly as dissatised as their

female colleagues with what they have learned about managing values conicts.

nWomen are more likely than their male colleagues to see values conicts arising

in a broad spectrum of business activities/practices. In addition to downsizing,

which both men and women see as a probable area for such conicts, women are

also concerned about investing in less-developed countries and natural resource

exploration.


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Opportunities and Challenges forBusiness Schools:

Opportunities and Challenges for Business Schools:n Students clearly see the benets of social responsibility in terms of a good public

image, but aren’t learning the connection to other business benets, such as

increased revenue, fewer legal or regulatory problems or reduced operating costs.

nDespite public discussions about environmental issues and the role of business

in helping to address those issues, students still don’t identify progressive

environmental policies as a very important component of a well-run company.

n The further along students are in their MBA program, the less prepared they feelto manage the values conicts that they believe they will confront in the workplace.

nWhile a majority of students see downsizing as a very likely area of concern, a far

smaller percentage feel the same about a number of other problematic areas,

such as nancial reporting and setting executive compensation levels.

n Students feel that the best way to learn about issues relating to companies’

social responsibilities is through integration into the content of core MBA courses.

Yet when asked to choose what courses should address such issues, areas such

as marketing, communications, nance and economics are comparatively low on

their lists.

n As they move through business school, students nd fewer opportunities to

practice ethical/responsible decision making as part of their MBA program.

CONCLUSION


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Opportunities and Challenges for Companies:n Students place signicant emphasis on the reputation of a future employer—over

60% of the respondents strongly agree that corporate reputation is an important

factor in their selection of a potential employer.

n But they do not rate responsible environmental practices high on their list of very

important criteria in job selection.

nMany students feel that corporate recruiters do not place high value on personal

integrity when interviewing potential employees. They also feel that being well-informed on sociopolitical issues is not highly valued by recruiters.

n 93% strongly or somewhat agree that managers place too much emphasis on

short-term performance measures when making business decisions.

n Only 12% of students strongly agree that most companies accurately report their

earnings and prots.

n They are apt to leave a job if values conicts occur.

n In focus groups of students who participated in the survey, participants did not

see mainstream corporate work as offering them the opportunity to make a

positive impact on society.


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We gratefully acknowledge the nancial

support we received from Deloitte LLP

to disseminate the ndings from this

research.


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© April 2008 The Aspen Institute Business and Society Program.

The research contained in this report is proprietary, and Aspen BSP has

sole responsibility for the content.


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B

Printed on recycled paper with soy based inks

For further information, contact:

The Aspen Institute Business and Society Program

(212) 895–8000

[email protected]

www.AspenCBE.org

The Aspen Institute Center for Business Education (CBE) equips

business leaders for the 21st century with a new management

paradigm—the vision and knowledge to integrate corporate protability

and social value. To that end, it provides business educators cutting

edge classroom resources and creates peer networks to incorporate

social and environmental stewardship into teaching, research andcurriculum development. CBE websites draw over 75,000 visits monthly

and its events and networks attract over 1,000 participants each year.

CBE is a part of the Aspen Institute Business and Society

Program (BSP), an organization dedicated to developing leaders for

a sustainable global society. Through dialogues and path-breaking

research, we create opportunities for executives and educators to

explore new pathways to sustainability and values-based leadership.

Center for Business Education

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